The financial world has changed significantly in recent decades. Millions of people are now using accounts and services that would have been unthinkable 20 years ago. They have started to upend a number of industries and approaches to finance. Cryptocurrency threatens to change the industry even more. Understanding these developments and trends is incredibly important for anyone currently looking to develop the financial skills they will eventually need.

The embrace of cryptocurrency

One of the most exciting and disruptive movements in the finance field is that of cryptocurrency. According to Wasif Vimawala, cryptocurrency emerged several years ago as a wholesale alternative to traditional financing. It is a currency based on an algorithm and operating outside of the confines of large banks and national governments. Cryptocurrency has the potential to significantly alter many aspects of the financial world. It allows for anonymous transactions and safe financial actions. 

But this technology can also transform the traditional financial world. Banks like JP Morgan Chase have started to use the blockchain technology behind cryptocurrency to secure their transactions. They have embraced the blockchain’s global, decentralized model and are starting to apply it throughout their company. This development will give an edge to the individuals who learn the coding and skills behind cryptocurrency in college. They will be able to embrace this new technology and place their resumes above those of their peers.

The digitization of investment

Investment has become a digital business over the past two decades. Individuals buy and sell in real time through their own investment platforms. They may conduct decades-worth of investing without ever meeting with a finance professional. This democratization has significantly altered how the global finance system interacts with its customers. Individuals can now work outside brokerages and even have AI make their investment decisions for them. There are even smartphone apps that are able to round up every purchase an individual makes and place the extra change into an investment account without a person even knowing the specific amounts invested. 

In order to adapt, Wasif Vimawala argues that investment firms have to embrace new models that showcase their strengths. They need to focus as much as possible on lowering their fees while also providing expert help. Firms also have to make their employees available and emphasize the customer experience. A positive customer experience and a friendly chat are not always available when one is working with a bank that is solely located online.

The new banking world

Banks have significantly changed in recent decades as well. Individuals are turning more and more towards alternatives that have little in common with older approaches to banking. They are leaning towards online bank accounts which pay much higher interest rates than their old-fashioned competitors. Individuals are also turning towards credit unions which pay higher interest rates and have lower fees than many of their competitors. 

Banks now have to do more and more to cater to these customers. Some banks have provided cafe areas which provide an experience along with banking services. Others help individuals tackle investing and money transfers that are made easier by apps and other banking services. Banks need to take more of these steps if they hope to retain their dwindling customer base.

Conclusion

The finance world is changing nearly every day. Individuals who want to become involved in finance have to take courses in computer science as well as accounting and investing. They have to know the ins and outs of Millennials and investment apps. Above all, they need to be able to change and react to whatever significant changes are occurring in the next ten years. Growth and change are essential to determining who exactly will be successful in the modern world of finance.